Impact Of Interest Rates On Purchasing Power

Impact Of Interest Rates On Purchasing Power

Know The Impact Of Interest Rates On Purchasing Power 

The interest rate you secure when buying a home not only greatly impacts your monthly housing cost, but also impacts your purchasing power.

Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford to buy will decrease if you plan to stay within a certain monthly housing budget.

The chart below shows the impact that rising interest rates would have if a buyer planned to purchase a $300,000 home while keeping his/her principal and interest payments between $1,520-$1,533 a month. With the interest rate going up buyer cannot afford that house anymore and has to go with the lower priced homes.

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If you are considering buying a home, act now to get the most house for your hard-earned money!



Diana Polovko Headshot
Author:
Phone: 984-833-9233
Dated: February 23rd 2019
Views: 513
About Diana: Honesty, integrity, and hard work are the key elements of my business. Behind every home sale or pur...

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